February auto sales stay muted

Automobile sales remained muted across most segments last month, reflecting the impact of tighter liquidity on purchase decisions. New model launches helped sales rise a little over the year-ago period, according to monthly data released by companies.

Utility vehicles outdistanced other categories of personal transport, with a new model giving traction to Mahindra & Mahindra’s sales. Two other launches, Maruti Suzuki WagonR and Tata Harrier, also drew buyers, but the broader industry did not have much to cheer about in February.

Cumulative sales of top passenger vehicle makers — Maruti Suzuki, Mahindra and Mahindra, Tata Motors, Honda Cars, and Toyota Kirloskar — increased to 206,418 units in February over 200,322 units in the same month last year.

“Auto sales are witnessing a temporary slowdown in the pre-election phase, in addition to factors such as tight liquidity conditions that have affected buying behaviour,” said Mr N. Raja, Deputy Managing Director, Toyota Kirloskar Motor (TKM). “Positive measures announced in the Budget, given its thrust on the rural economy, would certainly boost buying sentiment in the subsequent months”, he added.

Dispatches at Maruti Suzuki India remained tepid during the month. The car market leader that sells one in every two passenger vehicles in the country dispatched 1,36,912 units — only marginally up over the 1,36,648 unit it did in the same period last year. The overall volumes at the company were dragged down by the mini and compact car models. Cumulative sales of these models — Wagon R, Swift, Baleno, Celerio among others — dropped 1.6 per cent to 97,429 units over the same month last year.

Riding on the new launches including the newly launched compact sports utility vehicle, XUV 300, dispatches at Mahindra and Mahindra saw a year-on-year increase of 16 per cent to 26,109 units. “February has augured well for Mahindra”, said Mr Rajan Wadhera, President, Automotive Sector, M&M. He attributed the strong double-digit growth to XUV300.

Tata Motors, the fourth-largest in the pecking order, also saw sales pick up during the month on back of the Harrier. Dispatches at the Tata group flagship rose 2 per cent to 18,110 units over the same month. Mr SN Barman, Vice-President, Sales and Marketing, Passenger Vehicle Business unit at Tata Motors, said, “It was a challenging month, but the company has managed to report a growth.” He attributed it to the Harrier, adding that the model has a waiting for three months. Sales of buses, trucks, and cargo carriers, however, remained under pressure. Tata Motors saw commercial vehicle sales slip 5 per cent to 39,111 units last month.

Extending the previous month’s trend, sales at Honda Cars India ended the month on a strong note. Dispatches at the maker of City and Amaze models rose 10 per cent to 13,527 units over the same month last year. Mr Rajesh Goel, Senior Vice-President and Director, Sales and Marketing, Honda Cars India, said the strong volume is the result of company’s on-ground efforts and sustained sales momentum for models, specially the Amaze, City and WR-V. “The overall market sentiment is not overtly buoyant at this stage. However, we hope the market will revive soon,” he said.

In two-wheeler segment, TVS Motor Company posted a growth of 2 per cent: Royal Enfield’s sales dropped 14 per cent to 62,630 units in the period under review.